Telecommunications (Carrier Licence Charges) Determination No. 1 of 2006 (2004-05 Financial Year)

Overview

The Telecommunications (Carrier Licence Charges) Act 1997 was enacted to establish a method for calculating annual charges applicable to carrier licences held by telecommunications carriers. The Act addresses the need for a systematic approach to determining the financial obligations of telecommunications carriers, ensuring that the Commonwealth's costs for the administration of relevant aspects of the telecommunications sector are appropriately reflected in these charges. The Act was enacted by the Australian Parliament and its policy objective is to provide a transparent and accountable mechanism for determining these charges. The accompanying Telecommunications (Carrier Licence Charges) Determination No. 1 of 2006 specifies the proportion of the Commonwealth’s costs for the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997 for the 2004-05 financial year, calculated in accordance with accrual-based accounting principles. This determination was issued by the Minister for Communications, Information Technology and the Arts and is subject to parliamentary disallowance as a legislative instrument under the Legislative Instruments Act 2003.

Scope and Application

The Telecommunications (Carrier Licence Charges) Act 1997 applies to telecommunications carriers who hold a carrier licence, as it sets out the method of calculating the annual charges applicable to these licences. The Act specifically includes provisions for the Minister for Communications, Information Technology and the Arts to determine a portion of these charges, which reflects the proportion of the Commonwealth's costs for the administration of industry development plans under Part 2 of Schedule 1 to the Telecommunications Act 1997. This legislation operates on a national level, applying across the Commonwealth of Australia. The accompanying Telecommunications (Carrier Licence Charges) Determination No. 1 of 2006 provides the specific amount for the 2004-05 financial year, calculated in accordance with accrual-based accounting principles. The determination, classified as a legislative instrument under the Legislative Instruments Act 2003, must be tabled in Parliament and is subject to disallowance. It comes into effect the day after its registration on the Federal Register of Legislative Instruments. The Act does not specify exclusions, exemptions, or thresholds, and the scope of its application is largely defined by the specific charges and costs outlined in the accompanying determinations.

Key Provisions

The main operative sections of the Telecommunications (Carrier Licence Charges) Determination No. 1 of 2006 (the Determination) are those that outline the method for calculating annual carrier licence charges for telecommunications carriers under the Telecommunications (Carrier Licence Charges) Act 1997 (the Act). Specifically, section 15(1)(e) of the Act mandates that the Minister for Communications, Information Technology and the Arts must determine an amount by written instrument that reflects the proportion of the Commonwealth's costs attributable to the administration of Part 2 of Schedule 1 to the Telecommunications Act 1997 for the preceding financial year. This amount, as specified in the Determination, is $74,656.07 for the 2004-05 financial year. Subsection 15(2) of the Act further clarifies that such an instrument is a legislative instrument, subject to the requirements of the Legislative Instruments Act 2003 (LIA). Consequently, the Determination must be tabled in Parliament and can be subject to disallowance. Moreover, subsection 15(4) of the Act stipulates that the Commonwealth’s costs are to be calculated according to accrual-based accounting principles, which has been followed in this instance. The Determination imposes certain obligations and requirements on the parties it governs, particularly on the Minister for Communications, Information Technology and the Arts. The primary obligation is to determine and publish the proportion of the Commonwealth’s costs for administering Part 2 of Schedule 1 to the Telecommunications Act 1997 by written instrument. This amount must be calculated according to accrual-based accounting principles and must be made public through the Determination. The Minister must also ensure that the Determination is tabled in Parliament and is subject to disallowance. Additionally, the Determination must be registered on the Federal Register of Legislative Instruments, which is a statutory requirement under the LIA. Given the minor and machinery nature of this Determination, consultation was deemed unnecessary under paragraph 18(2)(a) of the LIA. Under the Determination, there are no explicit offences, penalties, or civil/criminal consequences for breach outlined within the Determination itself. However, the Determination operates within the broader framework of the LIA, which provides for the disallowance of legislative instruments by Parliament. If the Determination were to be disallowed, it would cease to have effect from the date of disallowance, thereby impacting the calculation of carrier licence charges for the relevant financial year. Furthermore, the failure to comply with the accrual-based accounting principles as specified in subsection 15(4) of the Act could potentially lead to inaccuracies in the cost determination, which might be subject to review or correction. However, the Determination does not specify any maximum penalties for such breaches, as those would be governed by other legislative provisions.